Marketing Consultation and Brand Coaching

27 Aug

First of all, thanks to all of you who have contributed to this blog on any of the subjects in which I have inquired. I hope now that the summer has passed we can keep a good thing going and growing. As I once again will be teaching this fall, I intend to look for more respondents to join the ACE panel.

This Week's Blog Inquiry

Wealthy consumers are increasingly seeking out memorable experiences over luxury goods in a premium market that has now hit US$1.4 trillion a year, according to the latest survey.

Boston Consulting Group and research firm Ipsos' in their Lux Report state that, "Spending on top-end safaris and other intangibles now accounts for 55 percent of all luxury spending - US$770 billion - as consumers choose to splurge on memories over handbags or watches."

The report goes on to say, "The world's younger affluent consumers are those most likely to choose kite-surfing over Cartier, as people born after 1980 are more likely to define themselves by what they've done rather than what they have acquired. Even in brand-obsessed China, where personal luxury goods serve as a strong badge of status and success, experiential luxury dominates, growing at 28 percent each year."

What are your thoughts on the growth of experiences; exotic vacations, business or professional tours, or maybe academic adventures replacing the quest for materialistic treasures. Is there a different level of status experience provides?

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5 Aug

The shopper in China is changing according to those who follow customer behavior, further demonstrating that China is a dynamic market and continuing to evolve. Labeled 'Consumer 2.0,' they demonstrate that through experience and knowledge gained, the Chinese shopper is becoming more sophisticated.

Reported by Jing, Chinese luxury shoppers are beginning to look for unknown brands over high-profile, recognized international labels. According to the trend tracker website, "There‘s a growing trend in China" a trend towards individualization: looking, being, and dressing differently from others. This is led by the second generation of Chinese shopper. They’re just starting out, but they’re larger, stronger and different from their predecessors. And incoming brands need to speak to them.” Other comments like, “China has moved from a country of collectivism to a country of individualism,” and “Today’s young people don’t want to blend in. They want freedom, at least in their appearance,” were included in the article.

In his recent book, What Chinese Want, Tom Doctoroff, North Asia CEO, J. Walter Thompson states that "While at the lower end of the luxury market, people do want that flashy . . . logo, but as you get more wealthy you need to project your power and wealthy in a more understated way." He predicts that luxury products that are more inconspicuous, with smaller, more subdued logos, will be the lasting ones, the brands that win.

Do you see evidence that shoppers here are becoming more thoughtful about the brands they buy, and how easy it is for others to identify their brand of choice?

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